Frequently Asked Questions

Yes. We can group an unlimited number of policies from various carriers for a single loan, as long as each policy owner has some nexus to the prospective borrower. This is a common way to meet the minimum loan amount threshold or qualify for a higher amount.

Eligibility generally requires a minimum of $75,000 in net cash surrender value. If a single policy doesn't reach that threshold, combining multiple policies can help qualify.

Yes. Kensington offers lending solutions for individuals, trusts, and businesses. Business-owned policies are eligible. Additional documentation (entity formation docs, resolutions, etc.) is required.

Request a policy in force illustration (sometimes referred to as a policy status or policy data report) from your agent or home office, which shows the current cash value. We are happy to obtain this report for you, provided we have your agent's contact information and your consent.

No — we only lend against the guaranteed cash value of your policy, up to 95%.

The borrowing base may not exceed 95% of the guaranteed cash value at any time during the term of your loan.

No credit check is required.

There are no application fees, closing fees, origination fees, annual maintenance fees, or prepayment penalties.

Loans are available up to 36 months, renewable upon maturity.

You pay interest only on the outstanding balance.

No.

No.

Most lines of credit close within 2-3 weeks, depending on how quickly the required documents are provided and signed. The longest step is typically the collateral assignment with the insurance carrier, which generally takes 7-10 business days. Once that is complete, funding can be scheduled at your convenience.

Request funds by signing an Advance Request form provided by our team. In most cases, funds are received within 24–48 hours of the approved request.

No, funds do not need to be drawn at closing. You can access them whenever needed. However, your first draw must be at least $75,000.

Kensington will pay off all existing loans with the proceeds of the new loan.

The proceeds of your loan will be wired to the bank account you provided on the Disbursement Instruction form, confirmed during the Step 6 phone verification.

With a line of credit, the borrower may pay down and reborrow principal. With a term loan, principal paid down may not be reborrowed. There is no difference in interest rates.

The assignee shares some of the same rights as the policy owner to the extent limited by the carrier's collateral assignment agreement.

One of three things: (1) the borrower pays the loan out of pocket; (2) the policy owner may request the funds owed be collected from the insurance carrier, thereby creating a carrier loan; or (3) the borrower requests a loan modification to extend the maturity date, increase the loan amount, or both.

Kensington may approve a request for a loan modification to extend the maturity date, or the funds may be collected from the insurance carrier, thereby creating a carrier loan.

We periodically evaluate the cash value in your policy to determine whether there is sufficient growth to support an increase in your available credit line. If your policy's cash value has increased significantly, we may be able to increase your line of credit prior to the loan's maturity date. Please contact your Kensington relationship manager to discuss available options and determine whether your policy qualifies.

Subsequent draws have a minimum amount of $10,000, and one-time paydowns must also be at least $10,000. If you set up a monthly ACH payment, you can choose any amount to be applied toward the line each month. You can make paydowns as often as needed, with no fees or penalties.

No. There are no restrictions on the use of funds. You may use the proceeds of your loan for any purpose.